Blue bottle will help Nestle dominate the coffee world.

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According to Bloomberg, Nestle (NSRGY-US) will acquire about 68% of Blue Bottle (BB) Cafe for $500 million, which also represents BB's estimated market value of $700 million.

It is understood that Blue Bottle, founded about 15 years ago, currently has 40 stores, and BB, which is slowly expanding from California to the United States, is famous for its fresh coffee beans and fashionable stores. It also raised nearly $120 million from Morgan Stanley (MS-US), Fidelity, singer Bono and others.

The news pointed out that this financing is beneficial to both sides, BB can obtain huge funds, and Nestle has a more fashionable brand. The two sides jointly announced that they will open 15 stores by the end of this year, and the current expansion cities are Los Angeles, New York, Washington DC and Tokyo, Japan.

In addition, although Nestle's position as the world's No.1 packaged coffee is still in place, it has recently encountered threats from JAB Holding's Keurig and Peet's brands. Nespresso, Nestle's quick and easy coffee, is also looking to break Keurig's lead in this market. BB sells a cold coffee at Amazon's (AMZN-US) Whole Foods Market, and hopes its coffee beans will soon be available at Whole Foods Market.